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This is the sixth Annual Review of Development Effectiveness (ARDE), covering the year 2002, whose findings indicate that the Bank ' s country, sector, and global programs are consistent with the Millennium Development Goals (MDG) themes, increasingly focused on poverty reduction. The review assesses, and evaluates the outcomes of its development assistance, indicating that at the project level, outcomes continue to improve, with seventy seven percent satisfactory ratings in FY01 (exceeding for a second year the Strategic Compact target of seventy five percent); over two thirds of projects were rated as likely, or highly likely to be sustained; and, one half rated as having substantial, or higher institutional development impacts. Sector strategies show increasing attention to poverty linkages, although findings suggest intensified efforts in the identification of relevant development outcomes, and corresponding intermediate indicators, as well as strengthening capacities, and incentives to monitor, and evaluate development outcomes. The Bank must move from recognizing the multi-sectoral determinants of development outcomes, to developing and implementing cross-sectoral strategies. Above all, the Bank needs to fully assess the implications at the corporate, country, sector, and global levels of the MDGs, and address these implications in its use of lending, and administrative resources.

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